Dangerman Damian Neaven sent fear through his victim's family today as his murder conviction was quashed.

Now the devastated relatives of David Huitson, 53, fear he will head back to Tyneside to fulfil a threat to terrorise them.

Paranoid schizophrenic Neaven attacked Mr Huitson, stabbing him through the heart, while he was out walking with his dog in Brunswick village, Newcastle.

He targeted the family after Mr Huitson and his daughter made a statement against Neaven for an attempted murder of another victim.

The brave grandad didn't stand a chance. He and his family didn't know of Neaven's mental state when they agreed to become witnesses.

He paid with his life, and now a court of appeal has overturned the murder conviction.

Widow Margaret Huitson said: "When the police told us of the court's decision I felt we have been deserted again. Who is going to protect my family from this man?

"He is now being considered for gradual release possibly to come back to his family home on day release. This will be just 10 minutes from us. He's already sent a letter smuggled out prison threatening my daughter's life.

"Prime Minister Tony Blair said crime victims and relatives are being let down by the justice system.

"We need him to help us now. All the mistakes which were made by the NHS to control his behaviour in the past are just being repeated."

The Court of Appeal ruled Neaven, now 27, was guilty of manslaughter after hearing fresh psychiatric evidence that, unbeknown to him and others, he was suffering from paranoid schizophrenia.

Overturning his life sentence, Lord Justice Rix, sitting with Mr Justice Mackay and Judge Ann Goddard QC, instead ordered him to be detained indefinitely in Ashworth Special Hospital, from which he will only be released when he poses no danger.

Neaven, of Wansbeck Road, Gosforth, was sentenced to life after his trial at Newcastle Crown Court in September 2001.

He never denied attacking Mr Huitson, whom he had subjected to a four-year vendetta, but put forward "wholly false" claims he acted in self-defence.

Lord Justice Rix said Neaven had a grudge against Mr Huitson who had given evidence against him.

On March 4, 2001, Neaven stabbed his victim twice in the chest.

Neaven later admitted he had been watching his victim for some time, planning to "do him".

Lord Justice Rix said Neaven's lawyers, the trial judge, nor Neaven knew he was suffering from schizophrenia at the time.

In the light of the new psychiatric evidence, the judge said: "We consider that the appellant's conviction for murder has been shown to be unsafe."

Neaven's barrister, Gerard McDermott QC, had argued that Neaven's mental illness was behind the killing and prevented him making the rational decision of running a diminished responsibility defence at trial.

David Robson QC, for the Crown, had told the judges those who live in the village were worried Neaven would return home if released.

Terrified Mrs Huitson said today: "He's pulled the wool over the eyes of the health authorities in the past. The only chance we had was that this man was kept locked up and on medication.

"It has already been said he can't be trusted to take his medication. When he is out, who is going to ensure he takes those drugs? Who will be with him 24-hours a day to maintain that level of supervision?

"I was told that a doctor at St Nicholas' hospital said before my husband was murdered that Neaven had the capacity to kill. I want that doctor to come forward now and help persuade the authorities he is a danger to my family and other people in the village.

"Will it take another member of my family to die at his hands before the authorities sit up and take notice?"

Mrs Huitson revealed Neaven had a letter delivered to a woman in the village, naming her daughter and saying he would be coming out to get her and others.

She said: "My daughter hasn't stopped crying. She's so scared she wants to leave her home and the country."

The letter was recovered by police.

Mr Huitson's son, Lee, 35, said: "We are devastated. We will never have any quality of life. My mother has been through so much and yet she's become a victim of the justice system again.

"It is unthinkable he could be back on the streets and return to the area."

Mr Huitson died when he was out walking his pet collie Bracken near his home on a Sunday afternoon.

The painter and decorator was a quiet, family man, but Neaven bore a grudge against the Huitson family after one of them gave evidence against him.

And when the shaven-headed thug, then 22 with a frightening history of violent crime, saw Mr Huitson, he took savage revenge. Mrs Huitson, who hoped to rebuild her life, said her husband was devoted to their children Clare and Lee, and grandchildren, Amy, Rebecca and Lucy.

Neaven had a history of violence, including assaults with weapons and wooden staves and was known to carry a knife. He had already been jailed for wounding, criminal damage and witness intimidation.

Four years earlier, Mr Huitson's daughter had given evidence against him following a hammer attack.

A mental health probe into Neaven commissioned by the Strategic Health Authority, following the conviction and sentence, said nothing could have been done to prevent him murdering Mr Huitson.

Prior to the offence, Neaven had received mental health care since the age of 15 and was considered by health professionals to be a dangerous and violent man. But he was not considered sufficiently ill to be detained.

The panel concluded: "Unless Damian Neaven had actually been deprived of his liberty - and there were no grounds to do so - it is hard to see how different treatment or care could have resulted in the offence of murder not taking place."